This & That
Posted by John Draper | Filed under This & That
I hope y’all are having a lovely weekend. It’s pouring here so I’m at my computer fooling around. As I mentioned in a previous blog, I’m working on a series for university students that will hopefully help with planning and dealing with student debt. If there are any specific things you want me to cover, let me know and I’ll try to work them in.
Another question: I’m thinking of making The Money Tree Myth, my book on how to teach kids about money, available at Lulu as I did with A Woman of Independent Means. I’m just trying to ascertain if there’s sufficient interest to be worth the effort. Let me know if you’d find this book useful.
You’ve all been terrific and have made this one of my favorite things to do. I want it to keep working for you. If you have questions about life, the universe and everything, think about what you would like to know more about, and then ask me a specific question to which I can respond in a blog. If there’s something that makes you go, “Hmmmm” I want to know about it. If there’s something that bugging you, tell me. If there’s something that you just can’t get your head around, throw it at me. I’ll do my best to keep it simple and straightforward.
If there are sites you regularly visit that you’d like to suggest to other readers, please do so. I have, from time to time, suggested places you might like to visit. But I won’t put up a blogroll because:
- I’d have to keep it up-to-date; links expire and I don’t have the time to keep checking back, and
- I’d hate to have a site on my blogroll that then posted something I just don’t believe in. So I’ll continue to make suggestions, but those suggestions will be dated in my blog so you’ll know when I last looked at them.
I added the bookmarks below to make it easier for you to keep track of your favorite blogs, but I’m not sure if this is something y’all will actually use. Let me know. If it’s not useful, it’s toast!
Bookmark: del.icio.us Digg StumbleUpon
August 2, 2008 at 8:31 pm
The answer is 42 (sorry, I couldn’t resist)
I think you introduced me to http://www.unclutterer.com ….. FANTASTIC site, I have now read all the way back to the beginning, and every day is something interesting.
I have my name on the wait list for your books at the library, i am sure I will end up asking for them all as Christmas gifts from loved ones, but I want to read them right away. Having them available to buy online is a great option.
August 2, 2008 at 9:48 pm
Hi Gail. I was hoping you’d write something on the weekends. This has become my morning ritual. Gives me something to ponder and keeps my financial goals more in mind during the day.
I was wondering what age group your kid’s money book was geared toward. I’m afraid I haven’t done such a great job teaching my kids about money. They’re old enough now that I recommend they read your website and follow the formulae therein…lol
I would be interested in getting copies of your books, absolutely.
Thanks for all the info Gail. I really appreciate it.
August 2, 2008 at 10:03 pm
I would love to read your book about money and kids. My daughters are 7 and 4, and I want them to grow up knowing the value of money, and how to use it correctly. I try to keep them informed of how much things are, and how money is earned, but the more information the better on teaching them the right things.
I love your blogs – I especially love your attitude and how you write. Keep up the great work!
August 2, 2008 at 10:03 pm
Gail, I’m no longer a student but I have some suggestions for topics to cover.
When I first moved out on my own with my best friend, we felt prepared. We had bought all the items we would need for our apartment. We had furniture lined up and a deposit ready. We had an idea of what utlities would cost us. We thought we were pretty smart cookies!
We did fine. The bills were always paid on time and groceries were in the cupboard. What we didn’t know anything about was budgeting for the long term.
My suggested topics would be:
-how to budget your living expenses
-why an emergency fund is important – even as a student
-how credit works and how a credit score is established/built.
-how leasing or buying a car works.
-how interest is calculated in general terms.
-encourage saving for a rainy day
-how to tackle the student loans after graduation
-simple banking
-record keeping ( filing your bills, stmts etc)
-Why they should avoid pay day loan companies
-understanding that when they sign on the dotted line, they are making a commitment ( ie: gym memberships, apartment leases, cell phones). It’s a contract and that makes them obligated to pay.
*I’m sure you’ve already thought of these since you’re such a smart cookie!
August 2, 2008 at 11:59 pm
Hi Gail,
One topic that mystifies me as a student is making tax deductions work. I would LOVE if you could include tips on carrying forward tuition or when to claim it, and what kind of “school expenses” are tax deductible (i.e., student loan repayments/books/student transit cards, etc).
Thanks and I love your blog! I subscribe through Google and I read it at work
August 3, 2008 at 1:20 am
Topics that need to be discussed with college students would definently depend on where they are in the college process. What I found while I was in college that for the most part I was offered more loan than I actually needed to pay for school and all of the associated cost (called cost of education in the states). Every year when I would get my finanacial aid package I would sit down and figure out how much the year was going to cost me, how much money I had squirreled away over the summer and how much I was offered in grants and loans. Of course I always took the grants as that is free money but I always sent my loan documents back revised for each term as necessary (these were subsidized laons meaning the goverment paid all of my interest while I was in college). I didn’t want to take a dime more than I had to while I was in college. On the other hand I had more than a few friends that would take every dime offered to them even though they didn’t need it. In the end they graduated with about three times the debt load that I did for the same education. My point with this is “just because you are offered the money doesn’t mean you need to take it.” Students need to ask themselves the question “How long after I am done with school do I still want to be paying for college and the lifestyle you chose?”. Student farther along in college need the lessons on what life actually costs after college. Can you really afford not to share an apartment (remember you are no longer splitting the bills). If you keep living like a college student for a few years after graduation you can pay college off sooner and have even more options for your future.
August 3, 2008 at 3:20 am
Gail, I’d love to know if you are living abroad whether you can still contribute to RRSP’s?
August 3, 2008 at 9:43 am
Gail;
I’d love to see a solid blog on student loans…..
I would also love to see weekend blogs; although I recognize we all need our off days! I just look so forward to reading your writing every morning and get disappointed when I remember its Saturday….. nothing is there today…
August 3, 2008 at 11:11 am
Bonjour Gail,
Yes, yes, I would totally buy your book. Being in a 99% french area I can’t go borrow from the library as they have none in english, so I must either order from Chapters/indigo online, or travel 45 mins in my mini-van (with the price of gas!!!) to get to the closest english book store, a Coles. I purchased and loved your other book, Woman of independant means, so this will continue the great info. Even though my youngest is 16 1/2 I am sure there will be information to tweek our knowledge, and will have me ready to inform the grand-babies when they come along. Keep up the great work, you totally inspire me/us and I can’t wait for the new season to start. I watch online, so can rewatch my faves as I wish.
August 3, 2008 at 11:12 am
BTW, also love the weekend blogs, it revs my financial engine for the day, helps me redirect if I have erred and gives me a pat on the back when I see how far I have come.
Merci!
August 3, 2008 at 11:50 am
I always wished there was a financial managment type of course when I was in high school, so that I wouldn’t have spent the next 15 years in debt. As soon as I was allowed to work, I wished someone could explain to me why I wasn’t going to get my full $6.70 an hour (those things called taxes, cpp, and ei).
When I hit university, I wished someone better explained the osap system, the concept of credit, and more, so that I wouldn’t be living at home at 35 trying to save for my shoebox in the sky…
So here’s my wish list to teach students:
* Credit – what is it, how you get it, credit rating/score, credit reports and especially, what happens when you don’t pay it back!
* Credit cards – how applying for all those cards in university affects your score, what the difference is between regular mc and visa, versus store cards, why you should use cash instead of cards, what those loyalty programs do and how they attract people.
* OSAP
* Banks – How they make money off of you, especially bank fees.
* Budgeting – expenses, organization of bills and statements
* Saving
* Bankruptcy
* Reinforcing the concept that you have to pay it all back 1 day!
August 3, 2008 at 4:01 pm
Hi Gail
Please do not include my name or email.
As a mother, I remember having taught my boys to save 10% of their allowances each week. They seemed to have at least two plastic banks that I remember (a pig and a bank building) – but eventually, the boys drew on their capital and spent it all and usually without my knowing it.
I started them with bank accounts and when they turned 18, I did get them into a newer online bank with no service charges.
I did get them to realize that they had to save for their post secondary education and they did! We didn’t want to have our sons tied up with OSAP payments for 12 years after graduation – so they saved.
Unfortunately, I think that we did them a little disservice with not applying for OSAP when they were eligible. My younger son went to university and stayed at home. Due to not having applied for OSAP he was ineligible for jobs on campus – those jobs were for the needy students and of course our son hadn ‘t shown any need by not applying for OSAP. He was also not eligible for bursaries or consideration for positions (summer internship type jobs – anywhere in Canada) – even though he was on the Dean’s list with a 85% plus average. My son found this information out by visiting with the financial officer at the university and then we applied for OSAP after two years at university. If this information is useful for you and others please check it out and use it in any of your parent and student blogs, etc.
A suggestion for you would be to speak with someone at the Ministry of Education about sending out preparatory information to students for university and college. There are OSAP introductory meetings at schools given every year in the spring for both parents and students. Printed information with a website link could be given at this time.
Perhaps school boards would be interested in posting your site and your information on their website for parents to read and for students to access in their graduating year.
Each Student Services Department might be interested in posting your information on their bulletin boards at school.
If you could get someone at the Ministry to actually feel that your information is valuable to learn, then maybe – just maybe, there could be a recommendation to teachers to teach a few money lessons within certain classes. Within the HIP3E course – Managing Personal Resources for Workplace students, there is some important information taught which would be nice for the more academically inclined to learn. Within Business Math – Accounting, perhaps some lessons can also be taught. I’m sure there are other courses as well that could incorporate this information. Some teachers might be doing it already (on their own) apart from all the other teaching required to be covered within each subject strand.
My sons have heard that they need to save 10% for the future and now that my older son is looking into a career choice which will not have a defined pension and benefit package, it has been repeated many times to him to reinforce the necessity to save for items and to prepare for life in general and retirement in particular. In the past, I always had a hard time describing what the saved money would be used for – because retirement is too far off for their visualization purposes. Perhaps when teaching your children to save you need to give reasons such as tuition for university or college as good short term goals or the purchase of a house or a car etc – if the child is receptive. When children are still very young it might have to be for a special toy to be purchased. My rainy day phrase just didn’t make it in their books!
So, Gail, keep up the good work and help our young people to understand how to manage their money.
Maxine
August 3, 2008 at 11:40 pm
Hi Gail,
I love your show. I didn’t know you had a blog until I found your link from http://www.canadiancapitalist.com/.
Here are some site that will probably be useful for your online readers
General Personal Finance & Investing:
http://www.taxtips.ca
http://www.investopedia.com
http://forums.canadianbusiness.com
Canadian Blogs:
http://www.milliondollarjourney.com/
http://www.four-pillars.ca/
http://www.canadiancapitalist.com/
As a recient graduate, I would like to throw out one tip I have. Don’t spend the “extra” money you have received from student loans on non-school related items. I made that mistake and wish I hadn’t. Lucky I’ve smartened up since then. Glad to be debt free!
August 4, 2008 at 12:59 pm
Gail,
A series for students is a wonderful idea.
My parents did not have a lot put away for my education, and I relied on a part time job and student loans to get through — an undergrad and then professional school.
By the time I was done, I had about $120,000 in student loans (yes, this is in Ontario) and a job making $42,000 a year. Then, I wanted to have children buy a house, etc. 10 years later, I’m still paying those student loans and, although they are 2/3 gone, they have been a huge drain on my life.
Aside from the student loans — I picked up terrible financial habits in university.
Imagine a young person moving away from home for the first time, where my work money was always my ‘crazy’ money. I could spend it as I wished. I was given a loan with no obligation at the time, and no budgeting instructions at all. I simply spent everything I made, with no thought to how I would pay those mounting loans when I graduated.
I distinctly recall lining up at the bookstore to buy books and being handed a credit card application by a well-groomed young man. I was astounded to learn that I could use this card to buy my books — and I wouldn’t have to pay for them, for months!
From that, I’m ashamed to say, I learned that credit is the way you get things. Being in debt wasn’t a big deal — because there were NO PAYMENTS. At that time, it was no pain; lots of gain.
Now, my husband and I have decided to dig ourselves out of debt — and learning about the power we have over money is a wonderful feeling. We use the ‘jar system’ on a weekly basis, and have an aggressive debt repayment plan. But it will still be 3-6 years before our consumer & student debt is gone, and we’re in our early 40s with two children.
I really wish that someone had taught me the principles of good personal financial management that I’m learning on my own by reading books and watching shows like yours, Gail.
I have borrowed ‘The Money Tree Myth’ from the library, and I’m proud to say that our 11 year old opened her first bank account the other day.
Thanks for all that you do, Gail — we really need people like you.
August 4, 2008 at 1:45 pm
Hi Gail
I’d love to see your views on SMART goal-setting.. I recall that you had a post not too long ago where you invited readers to name what action they were going to take that day toward their goal.. but I recall that a lot of the comments had to do with big picture stuff instead of setting out a small step toward a bigger goal. Anyway, I imagine most of us could use some tips on getting things done.. THanks so much
Hope you are having a lovely holiday MOnday.
August 6, 2008 at 4:04 pm
Gail
I’m 45 years old and returning to college this Fall to study part-time – I’m entering the third year of a 4 year social work course and so I’ll take 4 years to complete the 2 year full-time course. It’s my 3rd degree course (I have 2 others from England and moved to Canada 6 years ago). At the end of it I’ll have a professional qualification in social work and hopefully a new career which doesn’t involve too much computer work (for reasons outlined below).
I don’t qualify for OSAP as my husband earns too much and the OSAP rules don’t treat my financial identity separately from my husband. This has caused some friction between my partner and I as the degree course obviously has costs attached to it. I was hoping to get a part-time student job to cover the course costs but in order to be eligible for most of the student jobs you have to qualify for OSAP so for me that’s a catch 22.
In addition, I have to contend with a disability (which is why I’m effectively retraining and changing careers). I was a qualified librarian in the UK but struggled to get library work after I moved to Canada (for my husbands job). When I did eventually get some, I developed repetitive strain injury from the poor computer set up. Unfortunately, not having qualified for permanent worker rights, I couldn’t put in any disability claims.
I chose to leave library work to focus on yoga teaching (which is the one thing that has helped my health issues). However, my income plummeted and although I have the financial support of my husband, I don’t have much in the way of my own income. In addition, whilst I would very much like to get a part-time job, I’m wary of applying for minimum wage work of a repetitive nature as I don’t want the repetitive strain injury to come back (fortunately my symptoms are much better these days).
I would love to read some advice on handling finances as a mature student (especially one not eligible for OSAP) and also how to creatively obtain/make employment when you have a disability. I’m still hoping to get a part-time job – maybe retail – and trust that I can manage to do it. However, there’s no way I can consider call centre work as I have to be very careful how long I spend time on the computer.
Unfortunately so many of the jobs these days seem to involve computer use. And a friend of mine told me of a friend who got repetitive strain injury just from serving drinks at Tim Horton’s – just the repetitive nature of the actions she had to do aggravated her body to the point where she started to suffer from physical ailments.
I have to say the current situation I find myself in is one I never thought I would find myself in – I held a professional job in the UK and I never envisaged having to retrain in my 40’s and hunt around for part-time minimum wage work. So any advice you have would be much appreciated.